Interesting article about Oil

wanghong

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3 F$ {1 j+ V9 F  V" pBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
. F/ |% Z. `9 D5 }! x* O( Jthese oil producer will go bankrupt or out of the business even if
; }* p2 u: d8 r1 j# {8 M6 Y3 lcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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1 q; g) N3 K/ j4 ^1 |* o# MRecently OPEC reduced crude oil production twice over just a few
$ i- h6 l9 N3 g, ~months. There are three wars going on in Gaza, Iraq and Afghandistan.
! H+ x& h7 a3 |8 J3 VA year ago these things would have spiked the price of crude oil by at
0 o* u- d6 f% P( E' j+ a/ hleast $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
/ B. l# e' c" u& A( I! y, I6 bof so much news. These reasons are:


$ \1 W; ?# J; U) l+ w% E, f1. New oil has been found in Canada, Montana, North & South Dakota and
; e. E6 K/ s* Ein the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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. G) h# ]5 G. H( @+ P" j& ~3 o% P4 T2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.


# V' D; g- m* D- Y# G1 s) m3. New methods of injecting CO2 and surfactants into oil wells is
0 \: j% }) {+ t+ l8 Ibeing used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
9 H% k4 k2 ?) W5 R& `# Wpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


% w5 n' A, ^$ y3 D! O0 g5. Virtually every restaurant in the US and all food processing plants
( g* N5 N2 O- q, p% Pare now selling their used oil to bio-diesel producers. Every pork,
. `4 u! w3 Q; Xcattle, turkey and chicken processing plant will soon sell their fat
" C- U' @& N6 a+ |3 p( Vto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
% ?4 j; L- y0 \9 ^6 p. \* C

6. There are 99 nuclear reactors in various stages of planning and
& l- l: G5 a* [* Econstruction around the world at this time. Several hundred more are
! e6 M4 Z4 f+ {! H3 N* Xexpected to be built in the future. Much of the energy they produce
will replace oil.


  n2 D5 K7 C* d7 K7 C9 X7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
, v: p& F2 H4 z. T9 Z/ lwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
, ]4 E* I9 }' q/ h) G# \: m: L

Airlines are flying airplanes with bio-fuel. They are finding the bio-
5 n( l2 l+ ^0 E4 sfuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
  x9 i7 o$ A7 T9 i7 L0 gavailable at very little cost or risk. The gas is displacing crude
2 k; D, r' D1 d$ a. p' g0 aoil.
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+ p# O' r' W* p3 B6 V- `
- ?) |  T; k5 u* c$ l9. Coal is being transformed into a clean burning liquid fuel. The CO2
" V( J* t5 G/ b# u' b2 b8 y1 {produced as a byproduct is sold to oil companies for injection into
oil wells.
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% y& [1 W. d7 d! S# d
10. Solar, wind and ocean energy is displacing oil as an energy
8 n9 v  J) s; R: Y& B; asource. Three new wind turbines are being erected every day in the US.

* @# C! P* R$ C/ h
Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
* ^9 c( `  \  v/ K( J" Tchanging. The important thing is that OPEC no longer has the ability
to control oil prices.


With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
5 S; e0 _6 A4 b: ?( hIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only